A brilliant strategy may put you on the competitive map. But only solid execution keeps you there. Unfortunately, most companies struggle with implementation. That’s because they overrely on structural changes, such as reorganization, to execute their strategy.
Though structural change has its place in execution, it produces only short-term gains. The research already mentioned in the above article by Neilson, Martin, and Powers shows that execution exemplars focus their efforts on two levers far more powerful than structural change:
• Clarifying decision rights — for instance, specifying who “owns” each decision and who must provide input
• Ensuring information flows where it’s needed — such as promoting managers laterally so they build networks needed for the cross-unit collaboration critical to a new strategy.
So tackle decision rights and information flows first, and only then alter organizational structures and realign incentives to support those moves.